‘₹10.5 crore in money…’: Viral submit sheds mild on 75-80% of farmland offers being run on black cash in India

When a retired IAS officer confirmed as much as shut a ₹14 crore farmland deal, solely a fraction of the cash moved by official channels. The remaining — a staggering ₹10.5 crore — modified palms in money, counted for hours inside a financial institution with quiet complicity. This was no remoted case. Regardless of years of crackdowns, India’s actual property sector — particularly land transactions — stays a haven for black cash. From benami possession to underreported sale values, loopholes within the system proceed to allow huge cash-based offers shielded from tax scrutiny.

A Reddit submit just lately reignited the dialog round black cash in Indian actual property, notably in farmland transactions. “The quantity of black cash in farmland offers is staggering,” wrote one consumer, sharing a firsthand account that shortly went viral.

“So just lately I participated in a land deal… the opposite celebration was a retired IAS officer who was posted because the collector of our district. (The land was bought 2 a long time in the past whereas he was serving). This land was in fact within the identify of a benami of some cousin of his,” the consumer wrote. The deal was pegged at ₹14 crore, however solely ₹3.5 crore was transferred by financial institution accounts. The remaining ₹10.5 crore was paid in money — counted over 5 hours in a personal financial institution utilizing three money counting machines, whereas the financial institution supervisor made small speak.

“As I used to be a UPSC CSE aspirant earlier than, I used to be very scared with the way in which these folks had been dealing with money,” the consumer added. “They left I believe a couple of crores within the financial institution and carried the remainder of their automotive. My father termed them as ‘cheetha’ for counting every gaddi… I used to be shocked to know that there’s virtually 75-80% black cash in land offers.”

The submit drew a whole lot of reactions, many echoing comparable experiences throughout India.

“What else had been you anticipating?” replied one consumer. “In actual property and particularly land, unwritten rule virtually wherever in India is: you pay circle charge in white, relaxation in money/black… IAS or non-IAS, scenario is similar.”

One other shared, “In Tier 2 cities… in farmlands, that [white component] might be as little as 5%. I’ve seen land offers method above ₹14 Cr during which the cheque quantity was 7-7.5%, relaxation in money.”

A 3rd added, “Round Hyd there are some lands the place the ratio is 97:3… a ₹1 Cr land might need a e book worth of solely ₹3 lakhs.”

And a fourth summed up the sentiment: “Because of this Black Cash won’t ever go away from India. NEVER… It’s a Win-Win State of affairs for each events.”